System and method for active insurance underwriting using intelligent ip-addressable devices

ABSTRACT

A system and method are disclosed herein for maintaining an inventory of assets located at an insured property covered under an insurance policy based on data received from IP-addressable devices located at the property. The system includes an inventory database for storing inventory information about assets located at an insured property, a communication interface for receiving registration and operational data associated with an IP-addressable device, and a business logic computer. The business logic computer creates a data structure for storing inventory information about assets located at the insured property in the inventory database for each insured property. The business logic computer determines, for the insured property, the inventory information about the insured property&#39;s assets based on registration and operational data received from its IP-addressable devices located at the property. The business logic computer stores the insured property&#39;s inventory information in its associated data structure in the inventory database.

BACKGROUND OF THE INVENTION

Recent and emerging developments in networking protocols andtechnologies offer unprecedented flexibility, variety, and richness indevice interconnectivity and communications for home and commercialenterprises. Devices such as computers, televisions, tools, appliances,water/power/electrical meters can now connect seamlessly to allow datasharing and communication among the devices in both home and businessenvironments and in public settings.

One such technology that allows interconnectivity and communication ofdevices is Universal Plug and Play (UPnP). UPnP comprises networkarchitecture and protocols for pervasive peer-to-peer networkconnectivity of devices, such as intelligent appliances, tools, securityand fire systems, wireless devices, and other electronic devices. UPnPbrings easy-to-use, flexible, standards-based connectivity to ad-hoc orunmanaged networks in various kinds of settings, such as in the home, ina small business, and in public spaces. It is a distributed, opennetworking architecture that leverages TCP/IP and various web-basedtechnologies and network protocols to enable seamless proximitynetworking, allowing efficient and real-time data management andcommunication among networked devices.

Underwriting is the process of determining insurability and premiumlevels that will economically and profitably transfer risk from apolicyholder to an insurance company. In determining insurability andpremium, insurance carriers take into account such factors as profitgoals, competition, legal restrictions and the costs associated withlosses (claims costs), loss adjustment expenses (claim settlements),operational expenses (commission and brokerage fees), generaladministrative expenses, and the cost of capital. Though UPnP iscurrently used to inter-connect media devices in a home for homeentertainment, capabilities offered by UPnP and/or other technologiesfor interconnectivity and communication of networked devices are notcurrently being used by the insurance industry for insuranceunderwriting or performing other insurance related analysis andactivities. Instead, current underwriting practices for residential andcommercial buildings are generally based on crude historical data ratherthan real-time data about the insured property and its assets.

Accordingly, there exists a need for leveraging intelligent networkingtechnologies for obtaining data from IP-addressable devices located atan insured property to determine an insurance policy, identify andmitigate a potential insurance risk, and process claims associated withan insurance loss.

SUMMARY OF THE INVENTION

A “property”, as used herein, refers to a building structure and anygrounds associated therewith. An “asset”, as used herein, refers togoods, fixtures, devices, equipment, and electronic data located at theproperty.

A system and method are disclosed herein for maintaining an inventory ofassets located at a residential or commercial property covered under aninsurance policy based on data received from IP-addressable deviceslocated at the property. The system comprises an inventory database, acommunication interface, and a business logic computer. The inventorydatabase is configured to store inventory information about assetslocated at an insured property. The communication interface isconfigured to communicate with networks of IP-addressable devices forreceiving registration and operational data associated with anIP-addressable device connected to each of the networks. The businesslogic computer can communicate with the database and the communicationinterface. For each insured property having IP-addressable devices, thebusiness logic computer can create a data structure for storinginventory information about assets located at the insured property inthe inventory database. The business logic computer can determine, forthe insured property, the inventory information about the insuredproperty's assets based on registration and operational data receivedfrom the IP-addressable devices located at the property. The businesslogic computer can then store the insured property's inventoryinformation in its associated data structure in the inventory database.

An insured property's assets may include physical assets and electronicdata stored in the assets. Physical assets may include IP-addressabledevices located at the insured property. Based on the registration andoperational data received from the IP-addressable devices, the businesslogic computer can determine presence of the assets located at theinsured property. In some embodiments, the business logic computer candetect that an asset is added to or removed from the insured property.The business logic computer can update the inventory information storedin the inventory database in response to the detection. The businesslogic computer can determine insurance risks and an insurance policyadjustment based on the registration and operational data received froman insured property's IP-addressable devices. In certain embodiments, todetermine an insurance policy adjustment, the business logic computercategorizes an insured property's assets into one of a plurality ofactuarial classes. Based on each asset's assigned actuarial class, thebusiness logic computer determines an underwriting score for the deviceand also an aggregate underwriting score for all the assets located atthe insured property. The business logic computer determines aninsurance policy adjustment based on the aggregate underwriting scoreassociated with the insured property.

BRIEF DESCRIPTION OF THE FIGURES

The methods and systems may be better understood from the followingillustrative description with reference to the following drawings inwhich:

FIG. 1 is a block diagram of an active underwriting system forprocessing insurance-related data obtained from networks ofIP-addressable devices, according to an illustrative embodiment of theinvention;

FIG. 2 is a diagram depicting exemplary IP-addressable devices capableof communicating device data to an insurance company system via a localbase station, according to an illustrative embodiment of the invention;

FIG. 3 is a block diagram of the business logic computer used in theactive underwriting system as depicted in FIG. 1, according to anillustrative embodiment of the invention;

FIG. 4 depicts an exemplary IP-addressable device communicating devicedata to an insurance company system, according to an illustrativeembodiment of the invention;

FIG. 5 is a flow chart of a method of processing registration datareceived from an IP-addres sable device recently added to an insuredproperty, according to an illustrative embodiment of the invention;

FIG. 6 is a flow chart of a method of determining an insuranceunderwriting modification based on device data, according to anillustrative embodiment of the invention;

FIG. 7 depicts a table of underwriting scores associated with categoriesto which a plurality of IP-addressable devices are assigned fordetermining an insurance policy premium, according to an illustrativeembodiment of the invention;

FIG. 8 is a diagram depicting inter-device communication for the purposeof determining and mitigating potential insurance risks associated withthe devices, as determined by the insurance company system of FIG. 1;and

FIG. 9 depicts an illustrative addressable device with its addressingcapability enabled by an RFID tag for communicating its device data tothe insurance company system of FIG. 1.

DETAILED DESCRIPTION

To provide an overall understanding of the invention, certainillustrative embodiments will now be described, including a system and amethod for collecting, managing, and analyzing device data received fromIP-addressable devices located at an insured property for making variousinsurance related determinations related to the insured property and itsassets.

A number of technologies/protocols may be used alone, or in combinationwith one another, to enable devices with IP addressing capability toconnect to a network from which device data is communicated to aninsurance company's network for performing advanced intelligentunderwriting discussed below. Such technologies include, withoutlimitations, Zero Configuration Networking, UPnP, Jini, JXTA, and X10.Zero Configuration Networking, or Zeroconf, is a technology developed byApple Computer built upon multicast DNS and DNS Service Discovery. Byusing Zeroconf, users without technical expertise in networkingengineering can connect devices to a network, as Zeroconf supportsautomatic assignment of network addresses and device configuration.

As described in the background section, the Universal Plug and Play(UPnP) technology allows seamless interconnectivity of standalonedevices for data sharing and communication among IP-addressable deviceswithout the need for a network expert or system administrator toconfigure the network and devices connected thereto. UPnP comprises aset of network protocols, such as the Simple Service Discovery Protocol,SSDP, that allow easy addition and removal of devices to and from anetwork, made possible by UPnP's addressing, device discovery, devicedescription, and event-driven notification capabilities. UPnPadditionally allows peer-to-peer networking of devices, such as PCs,home appliances, customer electronic (CE) devices, wireless devices,and/or any other IP-addressable devices. The distributed and openprotocol of UPnP supports various communication protocols, such asTCP/IP, User Datagram Protocol (UDP), HTTP, and Simple Object AccessProtocol (SOAP) for exchanging structured information in a computernetwork, typically in the XML format.

Jini is a technology based on the Java platform and supports servicediscovery, description, invocation and presentation implemented usingstandard Java based programming languages and platforms. Similar toJini, JXTA was developed by Sun Microsystems and is a completemiddleware infrastructure by which peer-to-peer (P2P) applications basedon Java technology can be created. JXTA supports various open protocolsfor enabling devices connected to a network to interact with oneanother.

X10 is an industry standard for enabling the control of andcommunication among electronic devices in home or building automation.In particular, X10 is used as a standard for remotely controllingelectronic devices via power lines, telephone lines, Ethernet, radiofrequency waves, such as wifi, when the devices in a home or buildinghave been properly wired and configured for automation. The presentinvention can combine the remote control capability offered by X10 withany of the above-mentioned technologies that support seamlessinter-connectivity and networking of IP-addressable devices to allowactive control of the devices to mitigate insurance losses that mayoccur on an insured property.

IP-addressable devices referenced herein refer to any electronic devicecapable of uniquely identifying or advertising itself to an IP network.The process of obtaining an IP address by an IP-addressable devicedepends on the particular internet protocols used. With the limitednumber of IP addresses afforded by the IPv4, IP addressable devicestypically form a local area network, LAN, having a base station forrouting communication between each IP-addres sable device behind the LANand the internet. Following the IPv4 protocol, only the base station ofa LAN is assigned a unique public IP address. Each IP-addressable deviceconnected to the LAN is assigned a unique local IP address according towhich a base station can direct communication intended for a device. Inan IPv6 network, each IP-addressable device can be assigned with aunique public IP address, which allows the device to communicate withother devices connected to the internet directly, without going througha base station. To better manage the traffic flow between the internetand devices, a base station may preferably be used.

Irrespective of the internet protocol used, the process of obtaining anIP address is similar. Each device is a Dynamic Host ConfigurationProtocol (DHCP) configured client that requests an IP address from aDHCP server. For an unmanaged ad-hoc network in a home or an officebuilding, a DHCP server can also assign an IP address according to theautomatic allocation method because a network administrator is notrequired. DHCP servers used in a network for allocating IP addresses ofIP-addressable devices include a router, a switch, a hub, a networkappliance, and/or any computing device designated as the gateway to theinternet. In an IPv6 network, IP addressable devices, or hosts, can alsoconfigure themselves automatically through the stateless addressautoconfiguration (SLAAC) offered by the IPv6 protocol.

It is assumed in the following discussion that various combinations ofthe technologies described above can be used to enable IP-addressabledevices to communicate with an insurance company's system via theinternet. It is also assumed in the following discussion that theIP-addressable devices may have the IP-addressing capability built-inor, in the case of legacy devices, be provided with the IP-addressingcapability by devices and/or software having the IP-addressingcapability.

FIG. 1 is a block diagram of an active underwriting system 100 forprocessing insurance-related data obtained from networks ofIP-addressable devices, according to an illustrative embodiment of theinvention. The active underwriting system 100 includes an insurancecompany system 102, networks of IP-addressable devices 120, a remedialservice provider system 130, and a manufacturer system 116 incommunication with one another via the internet 110. The insurancecompany system 102 can receive device data from a base stationassociated with each of the networks 120 according any one of push orpull technology used in a client-server architectural model. Thecommunication interface 106 can periodically pull data from each basestation or push data, such as control data for remotely controlling theoperation of an IP-addressable device, to the base station.Alternatively or additionally, communicating device data from a basestation to the insurance company system 102 is interrupt or eventdriven. In some embodiments, the insurance company system 102 cancommunicate with each IP-addressable device directly using IPv6 protocolwithout going through a base station. In such embodiments, eachIP-addressable device is associated with a unique public IP address.

The insurance company system 102 includes a business logic computer 104,a communication interface 106, and a database 108. The business logiccomputer 104 includes a plurality of severs and computers. Thecommunication interface 106 may include a plurality of interfaces thatcan communicate with another networked device using the InternetProtocol and/or any other communication protocol.

The manufacturer system(s) 116 are systems associated with variousmanufacturers of assets and/or IP-addressable devices located at aninsured property. In some embodiments, the insurance company system 102can obtain additional data, such as device specifications, about eachasset or IP-addressable device from the device manufacturer that makesthe asset or device. In some embodiments, the insurance company system102 obtains a list of recalled devices from the manufacturer system(s)116 for determining, at device registration and/or periodically once adevice is registered with the insurance company system 102, whether anIP-addressable device or an asset needs to be sent back to themanufacturer for replacement or to a repair shop for fixing a faultidentified by the manufacturer and/or a regulatory agency.

The remedial service provider systems 130 are systems associated withservice providers, such as a repair shop, or government operatedentities, such as a fire station, for responding to insurance losses.The systems include a plurality of servers, clients, communicationsystems, and/or telematics monitoring systems. The systems 130 cancommunicate with the insurance company system 102, the networks 120,and/or any systems connected to the internet 110.

The networks 120 include a plurality of networks, local area or widearea networks associated with various properties insured by an insurancecompany. Located at each property are various assets includingIP-addressable devices, such as, for example, an appliance, a computer,a photocopier machine, and a plumbing system. Other illustrativeexamples of IP-addressable devices are depicted in FIG. 2. Theillustrative examples depicted in FIG. 2 include a television 204, astove 206, electric or gas, a toaster 208, an alarm system 210, a meter212, such as a water, a gas, or an electric meter, and a refrigerator214, all equipped with IP-addressing capabilities. Each IP-addressabledevice can communicate to a base station its device data indicative ofthe operational, condition, and use of the device. Examples ofinformation that may be contained in the device data of anIP-addressable device are described in relation to FIG. 4.IP-addressable devices may be UPnP enabled and/or RFID enabled. Anexample of RFID enabled device for outputting device data to a basestation or a RFID reader is described in relation to FIG. 9.

Though the illustrative embodiment depicts a home environment, otherssuitable environments include a small commercial establishment, a largecorporate setting, and/or public service areas. Illustrative examples ofIP-addressable devices or appliances include:

-   -   Home appliances    -   Lighting and appliance control systems    -   VoIP and mobile phones    -   A computer, server, printer, data storage device    -   Network devices: switch, router, firewall, session border        controller    -   Televisions, gaming systems, DVD players, video recorders e.g.,        DVR and TIVO    -   Fiber, cable and DSL modems    -   HAM Radio Equipment    -   Surge protectors,    -   Motor vehicles (personal, recreational, commercial, and marine)    -   Home mechanicals (same as above)    -   Manufacturing equipment    -   Gym equipment    -   Commercial building mechanicals (boilers, UPS, HVAC, emergency        systems, electrical sub-station, switch gear, co-generation and        renewable energy generation equipment e.g., solar panels, wind        turbines, fuel cells, wave or tide generation; lighting systems        and their controllers, and electrical panels)    -   Security systems, video surveillance, alarm systems, and furnace        alarms

Each of the IP-addressable devices listed above may be a device withbuilt-in IP-addressing capability or may be a legacy device equippedwith an additional IP-addressable device and/or software. ForIP-addressable devices with built-in IP-addressing capability, one ormore software programs run on electric circuits of the device candetermine operational data about the device. In some instances, someIP-addressable devices equipped with self-diagnostics features candetermine software errors in its program, which may be associated withunique fault codes. The device can, through its communication or networkinterface, include the fault codes in its operational message or data tosend to the base station 202 for communicating the information to theinsurance company system 102. For legacy devices, their peripheral oradditional IP-addressable hardware and software components, such as anactive RFID tag, need to be physically wired with the devices themselvesto obtain device data about the devices.

Referring back to FIG. 1, the insurance company system 102 can usedevice data of an IP-addressable device to determine the presence of thedevice and/or another asset located at the property for maintaining aninventory of assets located at an insured property. For example, if anIP-addressable device is an IP-addressable television, device datareceived from the television may indicate the presence and operation ofthe television itself. In some instances, the insurance company system102 can use the device data of one IP-addressable device to determinethe presence of other assets connected to the device. For example, theinsurance company system 102 can determine, based on the device dataabout the television, the presence of entertainment devices connected tothe television, such as a user set-top box, a DVR, a video game system,and a stereo system.

It is particularly useful for an insurance company to obtain up-to-dateinventory information about assets of a property that the insurancecompany is insuring. This is because certain assets may be added to orremoved from a property during an insurance term, which affect theinsurance risks associated with the property covered under an insurancepolicy. Using device data received from an IP-addressable device, theinsurance company system 102 can update inventory information stored inits database 108 immediately after a new asset is added to an insuredproperty or after an asset is removed from the property. In someembodiments, as described in relation to FIGS. 5 and 6, the insurancecompany can determine a policy adjustment based on updated inventoryinformation about the assets located at an insured property. As anexample, if an oven with poor safety ratings is replaced with a safermodel, by receipt of new registration data for the new oven, theinsurance company system 102 may reduce the policy premium, eitherimmediately when the removal of the old oven is detected, uponperiodical review of the inventory, or when the insurance policy is upfor renewal.

The business logic computer 104 can also use device data to evaluate aclaim associated with an insurance loss. For example, after a home firedestroys many assets located at the home, the business logic computer104 retrieves from the database 108 inventory information associatedwith the home, which was updated based on device data last received fromIP-addressable devices located at the home. Based on the inventoryinformation, the insurance company system 102 can efficiently andaccurately determine assets that were destroyed in the fireautomatically. This way, the insurance company can also settle claimsquicker for policyholders whose involvement in the processing of a claimis also substantially reduced.

As mentioned above, each device can communicate directly with the system102 without being routed through a base station of a LAN, such as arouter, a switch, a hub, a computer used as a network gateway, and/orany other network traffic handling system capable of receiving packetsfrom the internet 110 for delivering packets to their associateddestination devices. However, to simplify discussions, it is assumed inthe following that each insured property has a local area network towhich a plurality of IP-addressable devices are connected forcommunicating device data to the insurance company system 102. To enablea base station to exchange device and/or control data betweenIP-addressable devices connected to the base station and the insurancecompany system 102, certain hardware and/or software components may needto be installed on the base station. For example, a policyholder maydownload specialized software from the insurance company or a thirdparty service provider via a computer coupled to the internet. Thesoftware may be installed on the computer, executing in the background.Alternatively, the policyholder may purchase a base station as aseparate hardware appliance configured for polling devices on its localnetwork and forwarding the appropriate device information to theinsurance provider or service provider. The base station may have itsown IPv6 public IP address, or it may communicate through a router onthe policyholder's local network. Depending on the base station, thefeatures or capability of the station may be easily extendable byinstalling additional firmware and/or other software code. In someinstances, modular hardware components, such as those used forconfiguring a router to allow delivery of Voice data Over IP (VoIP), maybe coupled to the base station.

When a base station of a network 120 first establishes communicationwith the insurance company system 102 after proper networkconfiguration, whether before or after a property associated with thenetwork is insured, the insurance company system 102 receivesregistration data associated with each IP-addressable device connectedto the network. Based on the registration data, the business logiccomputer 104 of the insurance company system 102 determines, asmentioned above, updated inventory information about assets located atthe property. If the property was not previously insured by theinsurance company, the business logic computer 104 creates a new datastructure in the inventory database 108 for the insured property fortracking inventory information about the property's assets.

In some implementations, the business logic computer 102 can determinean insurance policy premium for a property or an adjustment theretobased on underwriting scores associated with all of the assets in theinventory located at the property. To do so, the database 108 firststores various actuarial classes or categories that the business logiccomputer 102 can use to determine an appropriate actuarial class foreach IP-addressable device and/or inventoried asset located at theproperty. The business logic computer 104 assigns an underwriting classand category to each device or asset, along with a correspondingunderwriting score. To categorize each device and to determine eachdevice's underwriting score, the business logic computer 104 invokesappropriate business logic, in the form of computer executableinstructions stored on a computer readable medium, for processing theregistration data of the device. After scoring each device and asset, asillustrated in FIG. 7, the business logic computer determines a totalunderwriting score for all the inventoried assets located at a property.Based on a total underwriting score associated with a property, thebusiness logic computer 104 determines the insurability of the propertyand appropriate terms for an insurance policy for covering the property,including a policy premium and coverage limit.

If the property is already insured by the insurance company and isrecently equipped with IP-addressable devices, the business logiccomputer 104 can determine a policy adjustment for the property usingthe underwriting logic. In some embodiments, the business logic computer104 determines an adjustment in response to detecting that the inventoryinformation indicated in the registration data differs substantiallyfrom the inventory information already stored in the database 108 aboutthe property, which was submitted by a policyholder or his/her insuranceagent.

Once a property is insured by the insurance company and the system 102is configured to receive device data from the IP-addressable deviceslocated at the property, the insurance company system 102 periodicallyreceives operational data from the network, which may also trigger anupdate to inventory information and/or an insurance policy adjustment.Operational data is indicative of the operational status, condition,and/or the use of the device and/or another asset located at theproperty. In some instances, the operational data of a device mayindicate the failure or malfunction of the device. The business logiccomputer 104 may determine, after receiving the data by thecommunication interface 106, that the device has been removed from aninsured property. Accordingly, the business logic computer 104 updatesthe data structure associated with inventory information about assetslocated at the insured property to reflect the inventory changeindicated in the operational data.

In some embodiments, for each local area network, a base stationaggregates operational data received from each IP-addressable deviceconnected to a network and sends network packets containing theoperation data to the insurance company system 102 upon request,periodically, or in response to a request from one of the IP-addressabledevices. In other embodiments, a third party data aggregator systemaggregates device data received from a plurality of networks ofIP-addressable devices. The insurance company system 102 can communicatewith the third party data aggregator system for receiving device data.

In some instances, the business logic computer 104 requests additionaldata about an asset from the asset's corresponding manufacturer system116 (i.e., the system of the manufacturer of the asset) based on theregistration data already received about the asset. As mentioned above,the manufacturer system 116 can provide detailed technicalspecifications about the asset, which the business logic computer 104can analyze to determine insurance risks associated with the asset. Insome instances, introduction of risky asset onto a property may resultin the business logic processor 104 applying an immediate surcharge tothe policy premium. In other instances, upon detection of a significantrisk, the business logic processor 104 executes a notice procedure tonotify the policyholder of the risk. Failure to mitigate a predictedrisk can trigger the insurance company system 102 to increase thepolicyholder's premium. If a loss occurs, the business logic computer104 can further determine if the loss is associated with a predictedrisk that a policyholder has failed to mitigate, even though thepolicyholder has been notified of the risk. In some embodiments, aninsurance company may reject a claim arising from such risk coming tofruition. The insurance company system 102 can notify an intended partyvia mail, email, text messaging, web page alert, telephone call, and/orany other communication methods.

Though only physical loss associated with a device and/or an asset of aninsured property is typically covered by an insurance company, aninsurance company may also use the present invention to insureelectronic data and/or applications stored in a device, such as businessdata, documents, music, or other electronic media stored in a computeror a mobile application stored on a smart phone. In such embodiments,the device data received by the communication interface 106 may furtherinclude additional information about the electronic data stored in thedevice. In other embodiments, registration information related toelectronic data that a policyholder is seeking to cover under aninsurance policy is provided by the policyholder via a user interface,such as a web page, instead of from the device itself.

FIG. 3 is a block diagram of the business logic computer 104 used in theactive underwriting system as depicted in FIG. 1, according to anillustrative embodiment of the invention. The business logic computer104 comprises at least one central processing unit (CPU) 302, systemmemory 308, which includes at least one random access memory (RAM) 310and at least one read-only memory (ROM) 312, at least one networkinterface unit 304, an input/output controller 306, and one or more datastorage devices 314. All of these latter elements are in communicationwith the CPU 302 to facilitate the operation of the business logiccomputer 104. The business logic computer 104 may be configured in manydifferent ways. For example, the business logic computer 104 may be aconventional standalone computer or alternatively, the function ofbusiness logic computer 104 may be distributed across multiple computersystems and architectures. The business logic computer 104 may be linkedto other servers or systems housed by the insurance company system 102,such as the communication interface 108

The business logic computer 104 may be configured in a distributedarchitecture, wherein databases and processors are housed in separateunits or locations. The business logic computer 104 may also be seen asa server located either on site near the insurance company system 102,or it may be accessed remotely by the insurance company system 102. Somesuch units perform primary processing functions and contain, at aminimum, a general controller or a processor 302 and a system memory308. In such an embodiment, each of these units is attached via thenetwork interface unit 304 to a communications hub or port, such as thecommunication interface 108, which serves as a primary communicationlink with other servers, client or user computers and other relateddevices. The communications hub or port may have minimal processingcapability itself, serving primarily as a communications router. Avariety of communications protocols may be part of the system,including, but not limited to: Ethernet, SAP, SAS™, ATP, BLUETOOTH™, GSMand TCP/IP.

The CPU 302 comprises a processor, such as one or more conventionalmicroprocessors and one or more supplementary co-processors such as mathco-processors for offloading workload from the CPU 302. The CPU 302 isin communication with the network interface unit 304 and theinput/output controller 306, through which the CPU 302 communicates withother devices such as other servers, user terminals, or devices. Thenetwork interface unit 304 and/or the input/output controller 306 mayinclude multiple communication channels for simultaneous communicationwith, for example, other processors, servers or client terminals.Devices in communication with each other need not be continuallytransmitting to each other. On the contrary, such devices need onlytransmit to each other as necessary, may actually refrain fromexchanging data most of the time, and may require several steps to beperformed to establish a communication link between the devices.

The CPU 302 is also in communication with the data storage device 314.The data storage device 314 may comprise an appropriate combination ofmagnetic, optical and/or semiconductor memory, and may include, forexample, RAM, ROM, flash drive, an optical disc such as a compact discand/or a hard disk or drive. The CPU 302 and the data storage device 314each may be, for example, located entirely within a single computer orother computing device; or connected to each other by a communicationmedium, such as a USB port, serial port cable, a coaxial cable, anEthernet type cable, a telephone line, a radio frequency transceiver orother similar wireless or wired medium or combination of the foregoing.For example, the CPU 302 may be connected to the data storage device 314via the network interface unit 304.

The data storage device 314 may store, for example, (i) an operatingsystem 316 for the business logic computer 104; (ii) one or moreapplications 318 (e.g., computer program code and/or a computer programproduct) adapted to direct the CPU 302 in accordance with the presentinvention, and particularly in accordance with the processes describedin detail with regard to the CPU 302; and/or (iii) database(s) 320adapted to store information that may be utilized to store informationrequired by the program. In some embodiments, the database(s) 320includes a database storing logic associated with underwriting of aninsurance policy for determining an insurance policy premium for aninsurance policy covering an insured property. The database 320 may alsostore at least a portion of the data stored in the database 108 of FIG.1 for easier and faster retrieval of frequently accessed data. Forexample, in addition to storing in the database 108 various actuarialclasses or categories used for categorizing the IP-addressable deviceslocated at an insured property, the classes and classification logic canalso be stored in the database 320 to allow for faster processing ofdata obtained from IP-addressable devices by the central processing unit302.

The operating system 316 and/or applications 318 may be stored, forexample, in a compressed, an uncompiled and/or an encrypted format, andmay include computer program code. The instructions of the program maybe read into a main memory of the processor from a computer-readablemedium other than the data storage device 314, such as from the ROM 312or from the RAM 310. While execution of sequences of instructions in theprogram causes the processor 302 to perform the process steps describedherein, hard-wired circuitry may be used in place of, or in combinationwith, software instructions for implementation of the processes of thepresent invention. Thus, embodiments of the present invention are notlimited to any specific combination of hardware and software.

Suitable computer program code may be provided for performing numerousfunctions used to process data obtained from a IP-addressable device inaccordance with various logic and rules associated with a particularinsurance application, the executable instruction for which can also bestored in the storage devices 314. The program also may include programelements such as an operating system, a database management system and“device drivers” that allow the processor to interface with computerperipheral devices (e.g., a video display, a keyboard, a computer mouse,etc.) via the input/output controller 306. The input/output controller306 can also be configured to communicate directly or indirectly via thecommunication interface 106 with one or more IP-addressable devices forobtaining device registration and operational data. The input/outcontroller 306 can further control the IP-addressable devices remotely,similar to a control point implemented on a network for controlling theIP-addressable devices.

The term “computer-readable medium” as used herein refers to anytangible medium that provides or participates in providing instructionsto the processor of the computing device (or any other processor of adevice described herein) for execution. Such a medium may take manyforms, including, but not limited to, non-volatile media and volatilemedia. Non-volatile media include, for example, optical, magnetic, oropto-magnetic disks, such as memory. Volatile media include dynamicrandom access memory (DRAM), which typically constitutes the mainmemory. Common forms of computer-readable media include, for example, afloppy disk, a flexible disk, hard disk, magnetic tape, any othermagnetic medium, a CD-ROM, DVD, any other optical medium, punch cards,paper tape, any other physical medium with patterns of holes, a RAM, aPROM, an EPROM or EEPROM (electronically erasable programmable read-onlymemory), a FLASH-EEPROM, any other memory chip or cartridge, or anyother medium from which a computer can read.

Various forms of computer readable media may be involved in carrying oneor more sequences of one or more instructions to the processor 302 (orany other processor of a device described herein) for execution. Forexample, the instructions may initially be borne on a magnetic disk of aremote computer (not shown). The remote computer can load theinstructions into its dynamic memory and send the instructions over anEthernet connection, cable line, or even telephone line using a modem. Acommunications device local to a computing device (e.g., a server) canreceive the data on the respective communications line and place thedata on a system bus for the processor. The system bus carries the datato main memory, from which the processor retrieves and executes theinstructions. The instructions received by main memory may optionally bestored in memory either before or after execution by the processor. Inaddition, instructions may be received via a communication port aselectrical, electromagnetic or optical signals, which are exemplaryforms of wireless communications or data streams that carry varioustypes of information.

FIG. 4 depicts an exemplary IP-addressable device communicating devicedata to an insurance company system, according to an illustrativeembodiment of the invention. FIG. 4 depicts the stove 206 and the basestation 202 from FIG. 2, and a computer 406 in communication with oneanother. In particular, the stove 206 can send device data, typically inXML format, to the base station 202. The device data includes aregistration message 402 and operational message 406. In someembodiments, the computer 406 stores messages 402 and 406 received fromthe base station 202 because memory is generally limited on a basestation. In other embodiments, the computer 406 is used as a networkgateway for communicating device data to the insurance company system102.

The registration message 402 includes information about the time anddate of when the message is generated, a manufacturer identificationnumber, a model number, a serial number, and device type of the stove306. The registration message 402 may also include information about anyembedded devices or services as well as URLs associated with the device.In some instances, an insured property with an appropriate server ornetwork appliance can publish the registration and/or operationalmessages about its IP addressable devices on a web page. A policyholderand/or insurance company personnel can access device data by viewing thepublished web page.

Once a device is registered with the insurance company system 102, thestove 206 generates and sends the operational message 404 to theinsurance company system 102 periodically or in response to an eventtrigger. The operational message 404 includes a time stamp indicatingwhen the message is generated, a current temperature of the stove 306,fault codes if faults were detected, the mode of operation, the durationof the operation, and a self-clean report of the stove 306. Depending onthe device, information contained in an operational message of onedevice may substantially differ from another.

Based on the registration message received about a device, the businesslogic computer 104 may define, for each device, relevant operationalinformation needed from each device. The database 108 stores definitionsfor each device when a device is first registered with the insurancecompany system 102. Insurance company system 102 communicatesdefinitions, or rules, for each device to the base station 202 of anetwork so that only relevant operational information about anIP-addressable device is communicated to the insurance company system102. An IP-addressable device can automatically configure itself so thatonly certain kinds of operational information is included in anoperational message 404 to the insurance company system 102.

In some embodiments, the stove 206 is a UPnP enabled IP-addressabledevice. The stove 206 can dynamically join a network, obtain an IPaddress, announce its name, convey its capabilities upon request, anddetect the presence and capabilities of other devices according to thenetwork protocols and architecture associated with UPnP. Once a devicejoins an UPnP enabled network, the UPnP enabled IP-addressable stove 206can generate and transmit the depicted registration and operationalmessages 402 and 404 according to the event notification protocoldefined in the UPnP Device Architecture, known as GENA, General EventNotification Architecture. Using this protocol, an UPnP description ofchanges in variables or states of the stove 206 and/or service may bedetermined at run time and exported in XML for communication to theinsurance company system 102.

In some embodiments, certain IP-addressable devices also include anynumber of sensors, timers, and computing devices for determining theoperational data contained in the message 404. The status or stateinformation indicated by such sensors, timers, computing devices, orinternal circuitry, can indicate various device conditions, e.g., astove is overheated or an alarm system is faulty. The stove 206 cancommunicate the operational message 404 to the base station 302 via awireless or wired connection.

FIG. 5 is a flow chart of a method 500 of processing registration datareceived from an IP-addressable device recently added to an insuredproperty, according to an illustrative embodiment of the invention. Themethod 500 begins at step 502 by first receiving device registrationdata of an IP-addressable device recently added to an insured property.Based on the registration data, either received from the device directlyor from a base station, the business logic computer 104 determines anenvironmental risk profile for the device at step 504. Also, as part ofstep 504, the business logic computer 104 additionally determines if adevice or an asset(s) that the device is used to monitor poses anenvironmental risk.

For example, an academic institution may have recently installed in oneof its insured buildings an IP-addressable laboratory fume hood designedto mitigate environmental risks, such as risks related to exposure tohazardous or noxious fumes, vapors, or dusts. Though a fume hood isdesigned to mitigate certain environmental risks, it may also poseenvironmental risks arising from its use and/or operation. The database108 may store a list of devices and their associated environmental riskdata indicative of risks that the device may pose and/or mitigate. Basedon a device's stored environmental data and registration data, thebusiness logic computer 104 can determine the device's overallenvironmental risk profile including both risks that the hood maymitigate, as well as risks that the hood may pose. If the environmentaldata associated with a particular device indicates that the device posescertain environmental risks, the business logic computer 104 generates awarning message and communicates a message to a policyholder at step506.

As described in relation to FIG. 1, many manufacturers, after releasingcertain products or goods to market, discover certain faults in theirsold products or goods. The manufacturers and/or a regulatory agency maycompile and publish a list of such products and goods. By communicatingwith the manufacturer system 116, the business logic computer 104determines if a particular device is among the products or goodsrecalled by its manufacturer, which is useful for risk assessment of thedevice. If a device is on a recall list, the business logic computer 104communicates the information to a policyholder and provides thepolicyholder information about repair facilities at step 510.

After determining whether a device is on a recalled list, the businesslogic computer 104 determines if the device needs to be on a specialrider at step 512. A standard property insurance policy, by default,does not typically cover electronic data loss, antiques, jewelries, andcertain other assets. A policyholder can extend his/her propertyinsurance policy to include a rider to cover such assets. The database108 stores a list of devices or assets that need to be insured under arider. Based on the registration data associated with a device, thebusiness logic computer 104 determines whether the device is among thelist of devices that require a rider, and may automatically add theasset to an existing rider, if it exists.

The business logic computer 104 determines, at step 514, whether apolicy adjustment is required or recommended. An adjusted policy may bea new policy for a property that is not currently insured by theinsurance company or an adjustment from an existing policy. Afterdetermining a policy adjustment, the business logic computer 104 alsogenerates an e-mail, URL link to a web page, or other communication toforward to the policyholder descriptions of suggested adjustments to thepolicy (including any associated changes in premium) for a policyholderor customer to review.

The business logic computer 104 then updates inventory informationstored in a data structure associated with the insured property toinclude information about the new device or asset recently added to theproperty at step 516.

In some instances, a recommended insurance adjustment includes anincrease in policy premium due to increased insurance risks posed by thenewly added device or asset (e.g., power tools or certain heavymachinery). Such an adjustment is binding. That is, a policyholder isnot given the option to decline the adjusted policy if he/she wishes tocontinue to insure the property and its assets. In other instances, thebusiness logic computer 104 determines that a policyholder may wish toadjust their coverage limits, either up or down. In those instances, apolicyholder can choose to either accept or decline the recommendedchange in coverage limit.

FIG. 6 is a flow chart of a method 600 of determining an insuranceunderwriting modification based on device data, according to anillustrative embodiment of the invention. The method 600 begins at step602 by receiving registration data from an IP-addressable device asdescribed in relation to FIG. 5 above. At step 804, the insurancecompany system 102 receives an IP address and/or device name associatedwith the device. At step 806, the insurance company system 102 receives,via a base station of a local area network, periodic status messagesgenerated by IP-addressable devices located at an insured property, suchas the periodic message 406 depicted in FIG. 4. At step 808, thebusiness logic computer 104 analyzes the device data received from abase station. The logic for carrying out such analysis may be stored inthe business logic computer 104 or the database 108. Based on thereceived device data, the business logic computer 104, as describedfurther in relation to FIG. 7, assigns each device or asset an actuarialclass, or category, which is then used by the business logic computer104 to determine an insurance policy adjustment.

After processing device data, the business logic computer 104 determinesat step 610 whether information contained in the device data isactuarially significant. For example, if operational data received froma base station of a network of IP-addressable devices indicates that aninsured property now houses particularly risky assets. Depending on thenature of assets, such as their associated environmental or other risks,the business logic computer 104 determines whether such a changeincreases the liability and/or risks associated with the property by asubstantial amount. If so, the business logic computer 104 determinesthat such a change is actuarially significant. With regard to dataassociated with an individual IP-addressable device, certain changes inits operation data may also be actuarially significant. The database 108may store a range of operational data that is acceptable for each typeof device. For example, the database 108 may store acceptabletemperature ranges for heating or cooking equipment. The business logiccomputer 104 can compare a device's current operational data with theacceptable operational data range defined for the device so that if thecurrent operational data exceeds the acceptable range, the businesslogic computer 104 determines that the data is actuarially significant.

If the business logic computer 104 determines that the informationindicated in operational data of a plurality of IP-addressable devicesconnected to a base station is not actuarially significant, the businesslogic computer 104 returns to step 606 for receiving additionaloperational data from the base station. If the business logic computerdetermines that the information indicated in the operational data issignificant, the business logic computer 104 stores the received data inthe database at step 612.

After storing actuarially significant data at step 612, the businesslogic computer 104 performs underwriting modification for modifying anexisting insurance policy at step 614. The business logic computer 104can determine an insurance policy adjustment by first determining anunderwriting score for the property. Additional details of anunderwriting process are described in relation to FIG. 7. Computer logic(e.g., in the form of computer readable instructions stored on acomputer readable medium) for carrying out the underwriting modificationprocess may be stored locally at the business logic computer 104 or inthe database 108. The business logic computer 104 invokes thecorresponding logic for determining an insurance adjustment and sends anadjustment notification for a policyholder to review.

FIG. 7 depicts a table of underwriting scores associated with categoriesto which a plurality of IP-addressable devices are assigned fordetermining an insurance policy premium, according to an illustrativeembodiment of the invention. As mentioned above, the business logiccomputer 104 assigns each device to one of the categories depicted inFIG. 7 based on the device's registration and/or operational data. Basedon the category to which a device is assigned, the business logiccomputer 104 assigns an underwriting score for the device or an assetthat the device is used to monitor. The insurance company system 102stores in the database 108 and/or its business logic computer 104 theappropriate applications, logic, or computer program for carrying outthe analysis related to device categorization. Details of anunderwriting system utilizing classifiers for categorizing and weightingrisks is described in U.S. Pat. No. 7,711,584, the entirety of which isincorporated herein by reference.

As depicted in FIG. 7, categories to which IP-addressable devices may beassigned include, without limitation, Home Security and Fire, GeneralAppliance or Device, Plumbing, Heating/Cooking, Recalled Appliances, andother. Based on registration data, which includes information about thename, make, and model number of a device, the business logic computer104 determines a category for the device and/or an asset the device isused to monitor. For example, in the registration message output by thestove 206, the business logic computer 104 determines that the stove isa Heating/Cooking appliance. As another example, registration data of anIP-addressable water meter is indicative of the presence of both thewater meter and a plumbing system. The business logic computerdetermines that the IP-addressable water meter should be assigned to thePlumbing system category.

Each of the depicted categories is associated with a differentunderwriting score or scoring algorithm. This is because differentcategories of devices pose different levels and types of risks that aninsurance company must underwrite. For example, the ElectricalAppliance/Device is given a higher underwriting score than theHeating/Cooking category because home appliances are generally known topose greater risks than devices used in Heating/Cooking. A more riskycategory is associated with a higher underwriting score indicating ahigher level of risk.

To determine an insurance policy adjustment, the business logic computer104 may determine a total underwriting score according to severalmethods. In some embodiments, a total underwriting score is a sum of allunderwriting scores associated with all IP-addressable devices or assetsbased on the categories that these devices are assigned to.

In other embodiments, each underwriting score associated with anIP-addressable device is given an additional offset or weighting factordetermined by the business logic computer 104 based on the operationaldata of each IP-addressable device. Registration information of a deviceis only relevant for determining the kind of device it is. Each kind ofdevice may be associated with certain known insurance risks, which thebusiness computer 104 can determine based on the device's registration.However, those insurance risks are predicted or anticipated risks,pre-defined by an insurance company and/or a device manufacturer. Theregistration data is not indicative of actual insurance risks that maybe posed by a device, which the business logic computer 104 can moreaccurately determine based on the device's operational data.

The business logic computer 104 can also use the operational data todetermine risks arising from interaction between devices because certaindevices are inter-dependent on one another for their operations and manydevices also share certain resources with one another. In someinstances, the operational data of inter-dependent devices may indicatecertain insurance risks arising from the interactions of the devices.Particularly, operational data indicative of potential risks arisingfrom device interaction may be determined via inter-devicecommunication, details of which are described in relation to FIG. 8. Forinstance, the business logic computer 104 may determine that certaininterdependent appliances at a property regularly experience a commonelectrical spike The data can be used to further fine tune underwritinganalyses carried out by the business logic computer 104.

In some embodiments, because a total underwriting score of an insuredproperty may change due to changes in operational data received from theproperty's IP addressable devices, the business logic computer 104 canactively adjust an underwriting score associated with a propertyperiodically or in response to an actuarially significant changedetected in the operational data. Based on the adjusted underwritingscore, the business logic computer 104 can determine a policy adjustmentaccording to the underwriting logic stored in the business logiccomputer 104 and/or in the database 108.

FIG. 8 is a diagram 800 depicting inter-device communication for thepurpose of determining and mitigating potential insurance risksassociated with the devices as determined by the insurance companysystem of FIG. 1. The illustrative IP-addressable devices as depicted inthe diagram 800 include the toaster 208 and the electric meter 212connected to the base station 202, which is a wireless LAN in thisillustrative embodiment. Also connected to the wireless LAN is thecomputer 406 for storing device data, such as registration and/oroperational messages generated and outputted by the toaster 308 andwater meter 312. A policyholder can also view stored device data usingthe computer 406. As mentioned above in relation to FIG. 7, operationaldata of devices inter-dependent on one another and/or are sharingcertain resources can be used by the business logic computer 104 todetermine a more holistic risk profile for the devices. Inter-devicecommunication allows devices to include, in their respective operationalmessage, information about their interactions with other devices, whichmay be used by the business logic computer 104 to determine anypotential risk that may arise from their interactions.

The insurance company system 102 can use the inter-device communicationcapability offered by the IP-addressable devices to mitigate potentialinsurance losses associated with the devices as determined by theinsurance company system 102. For example, the business logic computer104 may determine that for devices that are sharing certain resources,resource overload may occur, e.g., by overloading an electric circuit,which is an insurance risk. To prevent resource overload, each devicecan communicate with other devices competing for the same resource toself-adjust its resource consumption based on consumption informationcollected about other devices. In other embodiments, a centralizedcontrol device, such as a meter or a power control for controllingelectrical loads of various appliances or devices found in a home oroffice, can intercept inter-device communications to provide real-timeresource allocation, to track consumption patterns, and to communicateto the insurance company system 102 the state of the resource.

In some implementations, the two networked IP-addressable devicesdepicted in the diagram 800 may interact with one another and/or anyother devices connected to the wireless LAN to perform IP addressing,device discovery, device description, action invocation or control,event messaging, and presentation. When a device first connects to thewireless LAN, or base station 202, the device advertises itself to thenetwork and/other devices, including control points, connected to thenetwork. Once a device is discovered by the control points and/or othernetworked devices, a description of the device and the services itprovides is presented in a message in XML to the base station 202. Thebase station 202 communicates the advertised message to the insurancecompany system 102 for registering the device with the system 102.

FIG. 9 depicts an illustrative addressable device with its addressingcapability enabled by an RFID tag for communicating its device data toan insurance company system 102 of FIG. 1. As discussed in relation toFIG. 2, technologies related to RFID can be used to enable theaddressing capability of devices or assets located at an insuredproperty that otherwise lack network connectivity. The followingdiscussions describe various technical implementations related to theuse of RFID technologies for allowing RFID enabled devices tocommunicate their device data to the insurance company system 102 foractive underwriting, thereby expanding the ability of the insurancecompany to maintain an accurate inventory of assets on the property andexpanding the ability to provide accurate underwriting analyses.

In one embodiment, the RFID tag 904 is an active Wi-Fi enabled RFID tagwith 802.11 Wi-Fi capabilities, capable of communicating withlocation-aware wireless access points, such as the base station 202.Other types of active RFID tags suitable for the present inventioninclude the Extended Capabilities RFID tags offered by IntelleflexCorporation. In another embodiment, the RFID tag is a passive RFID tag.A passive RFID tag reader can detect the presence of the passive RFIDtag and any structure, component, or device attached thereto, such asthe photocopier machine 902.

In some embodiments, passive RFID tags, such as the tag 904, are used tokeep track of an inventory of assets located at an insured property. Apolicyholder responsible for the property insured under an insurancepolicy can attach such a passive tag to any or assets that he/she wishesto cover under the policy. In some instances, to receive certaininsurance premium discounts, policyholders are required to tag assetslocated at an insured property. A policyholder can use a passive RFIDreader to scan every tagged device to provide inventory informationabout the tagged assets to the insurance company system 102. The RFIDreader can communicate tag information to a local base station fromwhich the insurance company system 102 can receive inventory informationabout each tagged device located at an insured property. Alternatively,a policyholder can connect the RFID reader to a computer for uploadingtag information stored in the reader to an insurance company's webserver for updating inventory information about his/her insuredproperty.

In other embodiments, the RFID tag 904 is an active RFID tag 904consisting of both location tracking, sensor telemetry, and Wi-Ficapabilities. With its Wi-Fi capability, the RFID tag 904 isIP-addressable and can communicate with the local area network basestation 202. A DHCP server, such as the base station 202, may assigneach RFID enabled IP-addressable device, during discovery, its unique IPaddress either directly and/or through a RFID tag reader, depending onthe specific design choice.

An active Wi-Fi enabled RFID tag 904 includes sensor elements forobtaining sensor data about its surrounding, in addition to obtainingdata about the device itself. The tag 904 can further include a controlmodule for controlling the device the tag is attached to, such as thephotocopier machine 902 in this illustrative embodiment (e.g., to powerit down to reduce power consumption). To do so, the active Wi-Fi enabledRFID tag 904 includes an antenna for receiving commands from a basestation configured to communicate with RFID tags using radio waves. Anactive Wi-Fi enabled RFID tag 904 may include logic and memory necessaryto store and/or process sensor data acquired from its sensor elements.In addition to obtaining and transmitting device data about theoperation and state of the photocopier machine 902, the tag is alsocapable of detecting, through its sensor elements, environmentalconditions surrounding the machine 902.

Devices with an active Wi-Fi enabled RFID tag may connect to a networkhaving other IP-addressable devices enabled by other types oftechnologies, such as UPnP and/or Bluetooth. That is, certain Wi-Fienabled RFID IP-addressable devices may be used collaboratively withother kinds of IP-addressable devices, such as an UPnP enabledIP-addressable device with appropriate network configuration. Anexemplary description of such network configuration that enables the useof Wi-Fi enabled RFID tags for receiving and transmitting telemetry datawirelessly to a local area network is provided in Cisco's CompatibleExtensions for Wi-Fi Tags specification. With the appropriate networkconfiguration, each IP-addressable device, RFID enabled or otherwise,can advertise itself during discovery to other devices connected to anetwork for inter-device communication and communication with the basestation 202.

The invention may be embodied in other specific forms without departingfrom the spirit or essential characteristics thereof. Particularly, asmentioned above, various other technologies, in addition to UPnP andRFID, can be used to provide IP-addressing capability to electronicdevices so that these devices can provide their device data to aninsurance company's network using various network protocols. Therefore,the foregoing embodiments are to be considered in all respectsillustrative, rather than limiting of the invention.

1. A system for utilizing IP-addressable devices for maintaining aninventory of assets located at a residential or commercial propertycovered under an insurance policy, comprising: an inventory databaseconfigured to store inventory information about assets located at aninsured property; a communication interface configured to communicatewith networks of IP-addressable devices for receiving registration andoperational data associated with an IP-addressable device connected toeach of the networks; and a business logic computer in communicationwith the database and the communication interface, configured to createin the inventory database, for each insured property havingIP-addressable devices, a data structure for storing inventoryinformation about assets located at the insured property; determine, forthe insured property, the inventory information about the insuredproperty's assets based on registration and operational data receivedfrom the IP-addressable devices located at the insured property, andstore the insured property's inventory information in its data structurein the inventory database.
 2. The system of claim 1, wherein the assetsinclude at least one of physical asset including an IP-addressabledevice, and electronic data stored in the assets.
 3. The system of claim1, wherein the registration and operational data received from the IPaddressable devices indicates presence of the assets located at theinsured property.
 4. The system of claim 1, wherein the business logiccomputer is further configured to detect that an asset is added to orremoved from the insured property, and to update the inventoryinformation stored in the inventory database in response to thedetection.
 5. The system of claim 1, wherein the operational data of theIP-addressable devices indicates at least one of operational status,condition, and use of one of the assets located at the insured property.6. The system of claim 1, wherein the business logic computer is furtherconfigured to determine insurance risks associated with the assetslocated at the insured property based at least in part on one of theregistration and operational data of at least one of the IP-addressabledevices.
 7. The system of claim 1, wherein the business logic computeris further configured to determine an insurance policy adjustmentcomprising one of a change in coverage limit and premium based at leastin part on at least one of the registration and operational data of theinsured property's IP addressable devices.
 8. The system of claim 1,wherein the business logic computer is further configured to categorizethe insured property's assets into one of a plurality of actuarialclasses defined by an insurance company based on registration andoperational data received from the insured property's IP addressabledevices.
 9. The system of claim 8, wherein the business logic computeris further configured to assign an underwriting score for each of theassets based on its associated actuarial class and to determine anaggregate underwriting score for the insured property based at least inpart on the assigned underwriting score of each asset.
 10. The system ofclaim 9, wherein the business logic computer is further configure todetermine an insurance policy adjustment for the insured property basedat least in part on the aggregate underwriting score associated with theinsured property.
 11. A computerized method for utilizing IP-addressabledevices for maintaining an inventory of assets located at a residentialor commercial property covered under an insurance policy, comprising:storing, by an inventory database, inventory information about assetslocated at an insured property; receiving, by a communication interfacefor communicating with networks of IP-addressable devices, registrationand operational data associated with an IP-addressable device connectedto each of the networks; creating a data structure in the inventorydatabase for each insured property having IP-addressable devices, by acomputer, for storing inventory information about assets located at theinsured property; determining, by the computer, for the insuredproperty, the inventory information about the insured property's assetsbased on registration and operational data received from theIP-addressable devices located at the insured property; and storing, bythe computer, in the data structure in the inventory database theinsured property's inventory information.
 12. The computerized method ofclaim 11, wherein the assets include at least one of physical assetincluding an IP-addressable device, and electronic data stored in theassets.
 13. The computerized method of claim 11, wherein theregistration and operational data received from the IP addressabledevices indicates presence of the assets located at the insuredproperty.
 14. The computerized method of claim 11, further comprisingdetecting by the computer that an asset is added to or removed from theinsured property, and updating by the computer the inventory informationstored in the inventory database in response to the detection.
 15. Thecomputerized method of claim 11, wherein the operational data of theIP-addressable devices indicates at least one of operational status,condition, and use of one of the assets located at the insured property.16. The computerized method of claim 11, further comprising determining,by the computer, insurance risks associated with the assets located atthe insured property based at least in part on one of the registrationand operational data of at least one of the IP-addressable devices. 17.The computerized method of claim 11, further comprising determining, bythe computer, an insurance policy adjustment comprising one of a changein coverage limit and premium based at least in part on at least one ofthe registration and operational data of the insured property's IPaddressable devices.
 18. The computerized method of claim 11, furthercomprising, categorizing by the computer the insured property's assetsinto one of a plurality of actuarial classes defined by an insurancecompany based on registration and operational data received from theinsured property's IP addressable devices.
 19. The computerized methodof claim 18, further comprising assigning, by the computer, anunderwriting score for each of the assets based on its associatedactuarial class and determining, by the computer, an aggregateunderwriting score for the insured property based at least in part onthe assigned underwriting score of each asset.
 20. The computerizedmethod of claim 19, further comprising determining by the computer, aninsurance policy adjustment for the insured property based at least inpart on the aggregate underwriting score associated with the insuredproperty.
 21. A non-transitory computer readable medium storing computerexecutable instructions, which, when executed by a processor, cause theprocessor to carry out a method, the method comprising: storing in aninventory database inventory information about assets located at aninsured property; receiving registration and operational data associatedwith an IP-addressable device; creating a data structure in theinventory database for each insured property having IP-addressabledevices for storing inventory information about assets located at theinsured property; determining for the insured property the inventoryinformation about the insured property's assets based on registrationand operational data received from the IP-addressable devices located atthe insured property; and storing in the data structure in the inventorydatabase the insured property's inventory information.
 22. Thenon-transitory computer readable medium of claim 21, wherein the assetsinclude at least one of physical asset including an IP-addressabledevice, and electronic data stored in the assets.
 23. The non-transitorycomputer readable medium of claim 21, wherein the registration andoperational data received from the IP addressable devices indicatespresence of the assets located at the insured property.
 24. Thenon-transitory computer readable medium of claim 21, wherein thenon-transitory computer readable medium further stores instructions forcausing the processor to detect that an asset is added to or removedfrom the insured property, and to update the inventory informationstored in the inventory database in response to the detection.
 25. Thenon-transitory computer readable medium of claim 21, wherein theoperational data of the IP-addressable devices indicates at least one ofoperational status, condition, and use of one of the assets located atthe insured property.
 26. The non-transitory computer readable medium ofclaim 21, wherein the non-transitory computer readable medium furtherstores instructions for causing the processor to determine insurancerisks associated with the assets located at the insured property basedat least in part on one of the registration and operational data of atleast one of the IP-addressable devices.
 27. The non-transitory computerreadable medium of claim 21, wherein the non-transitory computerreadable medium further stores instructions for causing the processor todetermine an insurance policy adjustment comprising one of a change incoverage limit and premium based at least in part on at least one of theregistration and operational data of the insured property's IPaddressable devices.
 28. The non-transitory computer readable medium ofclaim 21, wherein the non-transitory computer readable medium furtherstores instructions for causing the processor to categorize the insuredproperty's assets into one of a plurality of actuarial classes definedby an insurance company based on registration and operational datareceived from the insured property's IP addressable devices.
 29. Thenon-transitory computer readable medium of claim 28, wherein thenon-transitory computer readable medium further stores instructions forcausing the processor to assign an underwriting score for each of theassets based on its associated actuarial class and determine anaggregate underwriting score for the insured property based at least inpart on the assigned underwriting score of each asset.
 30. Thenon-transitory computer readable medium of claim 29, wherein thenon-transitory computer readable medium further stores instructions forcausing the processor to determine an insurance policy adjustment forthe insured property based at least in part on the aggregateunderwriting score associated with the insured property.